A nice little video from Oakmark’s Nygren:
“Investors have been overpaying for dividend stocks while undervaluing companies that are buying back shares, Oakmark Fund’s Bill Nygren said Tuesday.
“One of the things we think investors have gone a little excessive on is bidding up companies that pay high yields, good income generators,” he said.
“And we think it’s interesting that companies that have been large share re-purchasers — effectively, it should be the same to an investor whether the money comes back as money or share repurchasers. But those stocks aren’t as expensive, so we like the big share repurchasers.”